They weren't represented on the Dwemer Orrery in previous games, which is what most of the info available is based on. The named meshes on the Oblivion orrery is info that's quite new to me as well.
My assumption that Magnus is fixed and equidistant from Nirn, comes out of lore, which states that the stars are fixed in their position and equidistant from Nirn. Magnus is a star, or a tear in Oblivion, just like any other. It just happens to be the largest, so I would assume it follows the same path as the other stars. I'm using http://www.imperial-library.info/obscure_text/cosmology.shtml as my main source, since it's the only definite info out there. Because the stars are referred to as "The Firmament", we can probably assume a medieval model for the cosmology of Nirn. That would likely be the Platonic cosmological model, which is Earth centric. I believe that the devs based their own Cosmology on this model, and stated lore seems to confirm that.
So, if the stars are "fixed" in their relative positions, and yet they seem to change position with the seasons, it leaves the question of how. Because the three Dominion Planets rotate, and yet they are always in the same relative positions to their constellations, it must be evidence of the Firmament itself rotating in a regular annual pattern, because otherwise how is that possible? The Dominion Planets rotate on the Orrery, and yet they're always following the same stars. Therefore, the outer layers of the cosmos must move, moving the stars in their wake. If they're fixed, it must be Oblivion (or Mundis) that is rotating. Using this internal logic, if the sun is also a star, and also fixed in its position, then it too must follow the same rotational pattern of the Firmament. This would explain the seasons, but not the night and day.
We can probably also assume, that since Nirn does turn on its axis, even though it has no orbital path on the Orrery, that it is the daily rotation of Nirn that causes the night and day. The size of Magnus can either be explained by the visual effect we see in the moon. As the moon rises, it appears smaller than it does when it's closer to the horizon, but it is always the same distance from Earth. But in the TES universe it could also be explained as a fluctuation of the radiating Magicka emanating from Magnus.
However, if Nirn did orbit Magnus, then the entire plane of Mundus would orbit Magnus, meaning the entire plane moves through Oblivion. It's more likely that is could be Mundis itself that is rotating and not the Firmament itself. Yet that leaves the question of the three Dominion Planets. It would mean they are moving in opposition to the rotation of Mundis, rather than in sequence with the Firmament, and it takes the question of Mundis orbiting right out of the equation. If Mundis actually moved through Oblivion, then the Dominion Planets would not be able to remain in a fixed relative position to the stars, because they follow a fairly simple orbital path around Nirn. It would also mean the stars wouldn't remain equidistant from Nirn, which they are stated to be by devs themselves. Because the stars are fixed in the Firmament and equidistant from Nirn, it follows that Nirn is indeed in the center and does not follow an orbital path.
So it's probably either Mundis rotating (not orbiting) or Oblivion rotating that causes the seasonal progression of the stars.